Longer-term solution needed.
Good news. One by one the Big Six energy suppliers are announcing a freeze on standard tariffs until Spring next year.
Citizens Advice says savings made when wholesale prices were lower are being used to help customers – it’s now time for firms who haven’t announced to make their intentions clear*.
Gillian Guy, national chief executive of Citizens Advice, said:
“A longer-term solution is still needed to tackle the higher costs loyal customers pay year after year on the standard tariff. One way the government could tackle this would be to make suppliers switch people who are on a low income and have been on the standard tariff for a number of years to a cheaper deal.”
At CA Reigate & Banstead we support this automatic switch**.
In June the Competition and Markets Authority reported that energy customers were being overcharged £1.4 billion a year. They considered imposing an automatic switch but shied away from it on the grounds it would affect competition.
We think competition matters but protecting loyal customers from this scale of rip-off matters more.
* Press release 01/12/16
** Energy overcharging 15/11/16